The Ministry of Corporate Affairs (MCA) has issued a public notice inviting comments on changes being considered to the Insolvency and Bankruptcy Code (IBC), 2016. The notice was issued on 18th January, 2023.
The changes the the IBC are being considered in order to strengthen its functioning. These changes are in relation to:
- admission of corporate insolvency resolution process (“CIRP”) applications,
- streamlining the insolvency resolution process,
- recasting the liquidation process, and
- the role of service providers under the Code
The notice provides a detailed analysis of all these prospective changes.
Additionally, currently, the Ministry of Corporate Affairs, the Adjudicating Authority (“AA”), the Insolvency and Bankruptcy Board of India (“IBBI”), information utilities (“IUs”) and service providers, all operate on separate technological platforms. It is expected that streamlining their interactions would lead to better transparency, minimisation of delays, and facilitate more effective decision-making.
Thus, there is a strong case for developing a state-of-the-art electronic platform, which can handle several processes under the Code with minimum human interface. It is being considered that this e-platform may provide for a case management system, automated processes to file applications with the AAs, delivery of notices, enabling interaction of IPs with stakeholders, storage of records of CDs undergoing the process, and incentivising participation of other market players in the IBC ecosystem. It may also allow regulators and the AAs to exercise better oversight over their respective domains of functioning through the consolidated information available on the e-platform.
The public is invited to submit their suggestion/comments, if any, along with brief justification. These may be submitted online on the weblink latest by 5:30 PM on 7th February, 2023. These comments should not be sent separately through e mail or hard copy and should be sent only through the weblink created for the purpose.
